CAF and MCDF launch a USD 3.5 million project to improve the sustainability of the Galapagos

The Multilateral Cooperation Center for Development Finance (MCDF) has approved USD 3.5 million to fund pre-feasibility studies and the structuring of a sustainable and secure public supply service for the Galapagos, Ecuador. The project will be carried out by CAF -development bank of Latin America and the Caribbean which is leading preservation and blue economy initiatives as part of its new role as the region’s green bank.

With CAF’s support, public authorities, the private sector, and the local population diagnosed and agreed upon a new sustainable supply policy in 2023. This policy aims to stop the arrival of invasive non-native species to the islands and prevent periodic food shortages. The Government of Ecuador adopted the agreed-upon roadmap as a guide for the implementation process, which will be led by the Galapagos Special Regime Council, the Ministry of Transport and Public Works, the Ministry of Environment, and the Public-Private Investment Secretariat.

In response to these realities, the MCDF approved USD 3.5 million for a CAF project that aims to improve the supply chain, mitigate the threat of invasive species, conserve the endemic ecosystem of the Galapagos, and ensure proper nutrition for the 30,000 inhabitants of the Archipelago.

"The partnership with MCDF shows that collaborative work is essential to promote development initiatives in Latin America and the Caribbean that have a real impact on citizens. With this MCDF approval, for example, we are adding technical and financial efforts to improve the overall sustainability of such an emblematic and environmentally rich place like the Galapagos,” said Ignacio Corlazzolli, CAF's Manager of Resource Mobilization and Global Partnerships.

With this project, CAF and MCDF hope to positively impact the Galapagos ecosystem by identifying all gaps and opportunities for improvement. This is a tangible example of CAF’s commitment to environmental sustainability and social development in Latin America and the Caribbean.

Among the challenges and opportunities identified by the project are:

• Improvement of quarantine, phytosanitary, and port facilities in PuertoGal (Guayaquil), the only legal entry port for goods to the Galapagos.
• Construction of an eco-port, urban docks, and delivery centers in the 4 inhabited areas.
• Implementation of biosecurity measures, protection, and conservation of a large marine reserve.
• Structuring a public-private partnership (PPP) for the supply service in highly sensitive and fragile conditions, requiring detailed evaluations in multiple technical and operational aspects.

Since 2020, the Galapagos Special Regime Governing Council (CGREG) and the Ministry of Transport and Public Works (MTOP), with the support of CAF, have been working on the design and consensus of an efficient and sustainable public policy for the supply of the resident and visiting population of the archipelago. The work carried out is based on the review, synthesis, and analysis of studies, primary and secondary data, and information generated over the last decade on this topic.